JB Hi-Fi adds a $1 billion in revenue in half-year 2018 thanks to Good Guys and New Zealand businesses

JB Hi-Fi has grown by $1 billion in half-year revenue since December 2016, thanks to strong performance, a major acquisition and online sales growth.

The company also recorded $151.7 million in net profit after tax for six months to the period ending 31 December 2017 across its three main business units.  

Revenues for the electronics and whitegoods retailer were up 41 percent compared to its 2017 half-year results, reaching $3.69 billion, up $1.07 billion from the previous corresponding period’s $2.61 billion.

Sales came from JB Hi-Fi Australia, which generated $2.47 billion, JB Hi-Fi New Zealand, which brought in NZD$124.6 million (A$115.5 million), and The Good Guys, which generated $1.1 billion.

The Good Guys recorded a major leap in growth, up $836.7 million (318 percent) from $263 million in first-half 2017. That result was due to sales being compared to just one month of sales for HY17, following the retailer's acquisition by JB Hi-Fi in September 2016.

Looking just to JB Hi-Fi Australia’s results, the company generated $545.3 million in gross profit, up 9.8 from HY17’s $496.5 million. The local arm of the business grew hardware and services sales by 13.5 percent, driven by communications, computers, audio, drones and games hardware categories.

Software sales were down 6.5 percent, while online sales for Australia grew 40.6 percent to $119.3 million for the comparative first half of the year. Online sales now represent 4.8 percent of the business’ Australian sales as the company makes a concerted effort to improve its online offering. JB also opened seven new Aussie stores in the 6 months between 30 June and 31 December 2017, the brand now boasts 192 stores nationwide.

JB Hi-Fi also reported its Australian Solutions business recorded “double-digit” sales growth, and “remains on track to deliver on the longer term aspirational sales target of approximately $500 million per annum”.

JB Hi-Fi expects its total group sales to hit $6.85 billion for the 12 months to 30 June 2018, with JB Hi-fi accounting for $4.75 billion in revenue and The Good Guys contributing $2.1 billion in revenue.